South Korean dry bulk shipping company Korea Line Corporation (KLC) has been ordered to pay an amount equivalent to 8.15% of its equity capital in compensation to Greek shipowner Carras Hellas.
The London Maritime Arbitrators Association has ordered the payment of USD37,642,862 to Carras Hellas in settlement of a claim, KLC announced in a Korea Exchange (KRX) filing on 6 May.
KLC plans to file an appeal with authorities in the UK.
KLC explained, “Carras chartered out a bulk carrier to us for 10 years at a rate of USD28,000/day. Then we reached a bareboat charter agreement with local shipping line Samsun Logix for the same period at a rate of USD33,500/day. However, Samsun Logix did not fulfill the contract, so the compensation claim from Carras Hellas has been filed.”
In 2009, at the height of the global financial crisis, Samsun Logix went into receivership and had difficulties paying KLC, which itself went into receivership in 2011.
KLC has since emerged from receivership after being acquired by a TK Chemical-led consortium in 2013.
KLC continued, “We separated 56% of the whole amount of compensation requested by Carras Hellas as estimated liability at the end of 2014.”
Meanwhile, the country’s Korea Shipping Gazette magazine reported that KLC would receive USD56.12 million from Samsun Logix as a result of a claim for compensation brought by KLC.